Best Equity ETFs
Stock-market exposure in a single ticker
ETFs tracked
2,795
Avg TER
0.59%
Median CAGR 3Y
+17.8%
Equity ETFs hold baskets of stocks — broad indices like the S&P 500, factor tilts like value or quality, or narrower slices like sectors and countries. They are the single most common building block in long-horizon portfolios because stocks have delivered the highest long-run returns of any major asset class.
Since 1926, US large-cap stocks have returned roughly 10% annualized in nominal terms, or about 7% real after inflation. Global equities compound at similar rates over long windows. That's the upside. The cost is volatility: the S&P 500 has experienced drawdowns worse than 30% in 1974, 1987, 2000–2002, 2008, and 2020. Any serious equity allocation has to survive those.
The three questions that matter for equity ETFs are what the fund holds, how diversified it is, and what it costs. VTI holds around 4,000 US stocks at 0.03%; QQQ holds 100 Nasdaq names at 0.20%; narrow sector funds can hold 30 stocks at 0.40%. Each is an equity ETF; none is a substitute for the others.
Beacon's composite score rewards low fees, deep liquidity, long track records, and consistent risk-adjusted returns. The ranked list below surfaces the funds that score highest across those axes, not the ones with the flashiest recent year.
Who this is for
- Long-horizon investors building the core of a diversified portfolio
- Anyone willing to trade short-term volatility for long-term compounding
- Not suitable for money needed within the next 3 years
Top 10 ETFs
Browse all 2,795 equity ETFs
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Open screenerFrequently asked questions
- What is an equity ETF?
- An equity ETF holds a basket of stocks and trades on an exchange like a single share. It gives you diversified exposure to many companies at once, with transparent holdings and typically low fees. Most equity ETFs track an index (like the S&P 500 or MSCI World); some are actively managed.
- How much of a portfolio should be in equity ETFs?
- It depends on your horizon and risk tolerance. A common starting point is 100 minus your age in percent equities (so a 35-year-old holds ~65%), but this is rough. Aggressive long-horizon investors may hold 90%+ equities; retirees relying on portfolio income often hold 40–60%.
- Should I pick a total market ETF or a sector-specific one?
- Most research favors broad market ETFs (VTI, VXUS, VT) as the core holding. Sector bets (tech, healthcare, energy) concentrate risk and usually underperform the broad market after fees over 10-year horizons. Keep sector funds as small tactical positions, not core allocations.
- What's the difference between an equity ETF and a mutual fund?
- Equity ETFs trade intraday on exchanges with bid-ask spreads; mutual funds transact once a day at net asset value. ETFs are generally more tax-efficient in taxable accounts because of their creation-redemption mechanism. Both can track the same index for similar fees.
Related Asset Class
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